News alert by SIA:
17th of September
Singapore Airlines (SIA) on Thursday said that it has exhausted the S$8.8 billion in gross proceeds raised from its rights issue in June last year, with the last S$0.6 billion having been used for aircraft and aircraft-related payments between July 1 and Sept 1. In a filing to the Singapore Exchange, the flag carrier said that the net proceeds of S$6.2 billion from the issuance of additional mandatory convertible bonds (MCBs) in June this year had yet to be utilised as of Thursday. SIA said it has also raised S$21.6 billion in fresh liquidity since April 1, 2020. The group added that in addition to the cash on hand, it continues to retain access to S$2.1 billion of committed lines of credit that are currently undrawn. As far as the 2020 rights issue goes, SIA spent the proceeds of S$8.8 billion between June 8, 2020 and Sept 1, 2021. SIA had used S$2.0 billion of the proceeds for the repayment of the bridge loan from DBS, which was set up in April 2020
to provide the liquidity required by SIA for the completion of the rights issue in 2020. Other uses of the proceeds included S$2.2 billion for operating expenses during the period, S$1.4 billion for ticket refunds, S$1.4 billion for aircraft and aircraft-related payments, as well as S$1.8 billion for debt service.
Comments:
The above news has caused selling of SIA shares today with low of the day currently at 4.83. I would look to position for the technical rebound in the next fews, allowing the selling pressure to ease. Good entry price at SGD4.80, with the same level of profit taking and stops.
Price of SIA has consolidated between SGD4.40 – SGD5.18 since April this year. Global covid infection experienced its second peak at the end of April as well which coincided with the start of the price consolidation of SIA.
Currently we are seeing the third peak in global infection.
The price is currently bouncing off its 200 days MA nicely, after briefly hitting it in the last few days.
RSI is showing signs of breaking higher with the MACD emerging off the baseline.
Entry SGD4.90 Trading Buy – TP SGD5.15 (5.1%) – Stop SGD4.75 (3.06%) – Time frame 1 month
SIA closed SGD4.92 today.